Money Laundering
Money laundering is the offence under section 462.31 of the Criminal Code of using, transferring, sending, delivering, transporting, transmitting, altering, disposing of, or otherwise dealing with property or proceeds of property with intent to conceal or convert the property knowing or believing it was derived from the commission of a designated offence. The offence is indictable with a maximum of 10 years (or hybrid in some configurations) and is often charged alongside the underlying predicate offence.
Mass Tsang's criminal lawyers handle money laundering files alongside the predicate offences they accompany. For more, see our blog post on money laundering in Ontario.
Elements
The Crown must prove: (1) the accused dealt with property or its proceeds in one of the listed ways; (2) the accused knew or believed the property was derived from a designated offence; and (3) the accused acted with intent to conceal or convert it. Knowledge or belief — including belief based on wilful blindness — about the criminal origin is essential. Mere handling of property that happens to have been illegally obtained, without the required mens rea, is not money laundering.
Designated offences
The "designated offence" predicate captures a broad range of indictable offences across the Criminal Code, the CDSA, and other federal statutes. Drug trafficking, fraud, theft, robbery, human trafficking, terrorism financing, and many others all qualify. The Crown need not prove a specific predicate offence; proof that the property was derived from "a" designated offence is sufficient.
Common scenarios
Money laundering prosecutions typically involve: structured deposits to evade reporting thresholds; international wire transfers and shell-company arrangements; real estate transactions used to convert cash into property; cash purchases of luxury goods, vehicles, or services; cryptocurrency-based schemes; and complex multi-jurisdictional arrangements. The Crown often uses forensic accountants and financial-intelligence experts to trace flows and establish knowledge.
Investigative and disclosure features
Money laundering investigations frequently involve wiretaps, production orders, search warrants, financial-institution evidence, and international cooperation. Disclosure is typically voluminous. Defence review requires careful attention to financial records, transaction analysis, and the chain of inference the Crown is asking the court to draw.
Defences
Defences include: lack of knowledge or belief about the criminal origin (a person who handles property in good faith without reason to suspect its source); lack of intent to conceal or convert (transactions for legitimate purposes); identification challenges in complex networks; and Charter challenges to wiretaps, production orders, and other intrusive investigative techniques. Forensic-accounting evidence is often the central battleground.
Sentencing
Sentences track the scale of the operation, the offender's role, the duration of the conduct, the underlying predicate offences, and any cooperation. Large-scale money laundering operations attract significant federal time; peripheral or low-level participants can sometimes resolve with shorter custodial or non-custodial outcomes. Proceeds-of-crime forfeiture orders are routine on conviction.
Related glossary terms
